Attorneys from Tilleke & Gibbins’ office in Phnom Penh have contributed an updated Cambodia chapter to Foreign Investment Review 2023, a global guide to the legal and regulatory environment for foreign investment in 29 jurisdictions around the world. Published and distributed by Lexology Getting the Deal Through (GTDT), the guide is focused on law and policy regarding foreign investment oversight, regulatory frameworks, procedural requirements, and other notable concerns for foreign investors. The Cambodia chapter was updated by Jay Cohen, partner and director of Tilleke & Gibbins’ Phnom Penh office, and Nitikar Nith, associate. The chapter focuses most closely on the law and policy section, which explains the government’s policies and practices regarding foreign direct investment, the main investment laws and their scope, and the relevant authorities responsible for regulating mergers, acquisitions, and other business transactions. The chapter also brings up key recent developments, such as the prospect of Cambodia establishing a competition regulator. A PDF of the Cambodia chapter can be downloaded through the button below. Tilleke & Gibbins also provided the Laos, Myanmar, and Vietnam chapters to Foreign Investment Review 2023. To browse the full guide for all 29 jurisdictions, please visit the Getting the Deal Through website.

Thailand’s Department of Business Development (DBD) has clarified that even after the amended Civil and Commercial Code (CCC) comes into effect on February 7, 2023, companies with articles of association pursuant to the previous CCC will still have to follow the previous requirements for publication of shareholders’ meeting notices. The amended CCC removes the requirement for companies to publish a notice in a local newspaper when calling a general meeting of shareholders. Instead, companies can call a general meeting of shareholders either by sending a notice by post with acknowledgement of receipt to every shareholder whose name appears in the register of shareholders or by delivering the notice in person. However, the amended CCC still requires companies that have issued share certificates to bearers to publish a notice at least once in a local newspaper or via electronic means, as prescribed by the relevant ministerial regulations. Notwithstanding these updated requirements, the DBD has issued a clarification explaining that the amended CCC coming into effect on February 7 will not usher in a blanket change to the way most companies are required to notify shareholders about a general shareholders’ meeting. If a company’s articles of association were made pursuant to a prior version of the CCC, that company will still need to publish a notice calling for a general meeting of shareholders in a local newspaper—even after the new amendment becomes effective. If companies would like to change their practice so that they no longer have to publish this notice, they will need to amend their articles of association after the effective date of the amended CCC. For more information on the new requirements of the amended CCC, or on any aspect of corporate laws and corporate governance in Thailand, please contact Prisna Sungwanna at [email protected], or Kobchai Nitungkorn at [email protected].

The available options for enforcing intellectual property (IP) in Cambodia have steadily increased over the past years, and both enforcement authorities and IP owners have gained valuable experience in enforcement operations. This experience, alongside new legal developments, has contributed to an increase in successful IP enforcement cases—most notably those involving the police or the courts in Cambodia. Targeted government policies have further fostered a more robust IP enforcement framework in Cambodia for both local and foreign IP owners alike. These owners collaborate with government actors in a bid to protect their IP in Cambodia and ensure that quality goods reach Cambodia’s consumers. Cambodia’s obligations under the Regional Comprehensive Economic Partnership (RCEP) related to IP and especially IP enforcement will lead to even more positive developments. Customs Enforcement Recently, many IP owners have shown particular interest in enforcement opportunities involving Customs in Cambodia, as these IP owners recognize Customs as a key authority in fighting the inflow and outflow of infringing goods. Customs (officially named the General Department of Customs and Excise) is responsible for monitoring the import and export of goods at border checkpoints, and levying duties and taxes on imports and exports. They facilitate trade, which is key for the private sector and government alike, and they collect taxes that can be used for the government and the public good. In this role, Customs is an important agency in fighting infringement, either by stopping imports so that the infringing goods do not reach consumers in Cambodia, or by taking action against exports, thereby making Cambodia less desirable as a manufacturing or transit hub for infringing goods. Besides improving the reputation of the country as a destination for investment and business, it can benefit the public as well, because infringing goods are often smuggled or misdeclared to avoid duties and taxes, resulting in a

Overview Although Vietnam has a number of mechanisms for accelerating the patent examination process, most of them have not lived up to the expectations of applicants. However, a fast-track patent prosecution highway (PPH) program was opened for the first time between the Intellectual Property Office of Vietnam (IP Office) and the Japan Patent Office (JPO) in January 2016, creating opportunities for all applications originating from Japan. The PPH program has been rolled out in the following stages: After more than six years of implementation, this program is considered successful and can be extended to support Japanese enterprises in establishing patent rights in Vietnam. Effectiveness This program has many advantages, such as: Applications originating from Japan are usually of good quality with clear and coherent specification It is possible that the IP Office’s requirements for specifications are already very consistent with Japanese applicants’ way of drafting specifications thanks to the JPO’s training programs for the IP Office. Patents in Japan usually have a short examination timeline and are granted very quickly, even within the application filing timeline in Vietnam (12 months from the priority date for applications filed under the Paris Convention and 31 months from the priority date for applications filed as PCT national phase applications). The coordination between the JPO and the IP Office has been very good. PPH applications are processed in a quick and efficient manner. Japanese applicants and their representatives also often coordinate well with the IP Office to rectify formality shortcomings and avoid prolongation of the examination period. Although there are no official statistics from the IP Office, according to independent statistics for applications whose PPH requests were filed by Tilleke & Gibbins’ associate firm (one of the most prolific filers under the PPH), the examination period for applications under the PPH has been significantly shortened, compared to the period for substantive examination as

The Federation of Thai Industries (FTI) announced on January 16, 2023, the opening of registration for carbon credit trading on its Renewable Energy and Carbon Credit Exchange Platform. This new online platform supports the domestic carbon market and provides Thai exporters with the ability to purchase carbon credits, allowing them to address demands from importing nations to conform to carbon emission reduction regulations. This is expected to be a positive step forward for the current practice in Thailand, in which the carbon market operates as a voluntary and unregulated buy-sell platform, free from government regulation. Developed in partnership with the Thailand Greenhouse Gas Management Organization (TGO), the FTI: CC/RE/REC X Platform, or FTIX, is intended to increase the promotion of national carbon credits, renewable energy, and renewable energy certificates, thus improving the country’s efforts to mitigate climate change. Entrepreneurs interested in registering for carbon credit trading on the FTIX can do so through the FTIX website at fti-cc.com. The platform initially supports carbon credit trading through over-the-counter methods. In the near future, the FTIX will be developed to support 100% renewable energy (i.e., RE100 energy) and renewable energy certificate trading. However, the related tax and carbon pricing policies have not yet been issued. The TGO is currently in discussions with the Fiscal Policy Office and the Ministry of Finance regarding fiscal policy for the FTIX. For more information on the FTIX, or on any aspect of renewable energy activities in Thailand, please contact Charuwan Charoonchitsathian at [email protected], Napassorn Lertussavavivat at [email protected], or Ratchapat Triteeyaputranonta at [email protected].

Thailand has issued a regulation on advertising content—including language-related requirements—securing the right of consumers to clear and fair advertising. The Committee on Advertisement, a subcommittee of the Consumer Protection Board under the Consumer Protection Act B.E. 2560 (2017) (the CPA), laid out the rules in Notification Re: Guidelines on Use of Advertisement Statements by Confirming Facts that are Difficult to Prove and Guidelines on Proof of Advertisement Statements B.E. 2565 (2022). The notification, which repeals and replaces two previous guidelines on the same subject matter, was published in the Government Gazette on January 13, 2023, and took effect the following day. Under the CPA, advertisements must not be false or exaggerative. If the Committee on Advertisement suspects an advertisement of breaching this restriction, the business operator may have to provide proof of the claims in their advertisement. This new notification clarifies the criteria for determining whether advertisements are false, exaggerative, or unfair to consumers, and also outlines the procedure and evidence for proof of the advertisement at issue. Mandated Content The notification requires that advertisements fulfill several requirements: Advertising statements must be in Thai; must be easily seen, heard, or read; and must not be misleading. If the advertisement is in a foreign language, the Thai translation must also be made available. The notification additionally sets detailed requirements for different types of advertisement media. The primary purpose of the advertisement must be to give consumers clear and sufficient understanding. For example, if an advertisement claims that services will be provided free, the services must not be conditional on any fees, so consumers understand correctly that they do not have to pay any fee for the services. Descriptions mentioned in advertisements—such as quantity, volume, size, number, or ingredients or elements—must reflect the actual products or services sold to the consumers. If the advertisement refers to results of

The opening weeks of 2023 have already seen a sharp increase in enforcement against violations of product labeling and advertising rules in Cambodia, in line with a notice issued by the country’s Directorate-General for Consumer Protection, Competition, and Fraud Repression (CCF) last year. Since the Law on Consumer Protection was adopted in 2019, a major legislative push has been seen, with general rules coming out focusing on providing consumers with sufficient information on products and services, for example via product labeling or advertising rules. Then, more detailed regulations were adopted for specific product categories, for example for food products and cosmetics. Khmer language requirements have been a key feature of the recently adopted rules on advertising and labeling. Despite the Khmer language mandates in consumer protection laws and regulations, enforcement and compliance was low. Most products on the market—especially imports—did not comply with the language requirement. In line with the revamped regulatory framework, the CCF has increased its enforcement, enabled by recent substantial budget increases. They have adopted clear implementing regulations for their officers to enforce in a practical yet effective manner, and they have been issuing notices reminding companies to comply with the new rules. A September 2022 notice announced that increased CCF enforcement of product labeling rules would start on January 1, 2023. As noted above, this has already proven to be true, and enforcement is now proceeding in earnest. Companies should take heed of this notice and ensure compliance with the Khmer language requirements (detailed below), as the CCF has shown that it readily acts against violators, from small retailers to large conglomerates. Khmer Language Requirement A sub-decree issued November 4, 2022 requires all commercial advertising of products and services—by any channel—to use Khmer as the primary language. If foreign-language text is used in advertisements, it must comply with the sub-decree’s rules

On December 30, 2022, the Central Bank of Myanmar (CBM) updated its guidelines on the Thai baht to Myanmar kyat (THB-MMK) direct payment mechanism for Myanmar-Thailand border trade and other flows of capital. The CBM’s guidelines outline an expanded mechanism allowing more trade gates and more designated banks, stipulating banking arrangements for worker remittances, setting out a payment mechanism for exports, clarifying procedures for importing goods via the Myanmar-Thailand border trade, and instituting new reporting procedures. The THB-MMK mechanism came into being on March 3, 2022, as a pilot project for border trade in Myawaddy, Tachileik, and other areas approved by Myanmar’s Central Committee on Ensuring Smooth Flow of Trade and Goods. In this update, Myawaddy, Tachileik, Myeik, Kawthoung, Mawtaung, and other approved border trading zones are identified as open to the THB-MMK mechanism. During 2022, the following banks were approved to provide services for the THB-MMK direct payment mechanism: Approved March 4: Ayeyarwaddy Farmers Development Bank and Kasikornbank Public Company Limited Approved July 29: Myanmar Economic Bank and Bangkok Bank Public Company Limited (Yangon branch) Approved August 12: Kanbawza Bank (KBZ) and Bangkok Bank Public Company Limited (Yangon branch) Approved December 30: Ayeyarwady Bank and Bangkok Bank Public Company Limited (Yangon branch), CB Bank PCL and Bangkok Bank Public Company Limited (Yangon branch), UAB Bank and Krung Thai Public Company Limited, Myanmar Apex Bank and Siam Commercial Bank Myanmar Limited, Yoma Bank and Siam Commercial Bank Myanmar Limited Banking arrangements for workers’ remittances were also stipulated in the new update. In this regard, designated banks can process these remittances by partnering with CBM-permitted international currency transfer businesses, mobile banking service providers, and mobile money service providers after obtaining approval from the CBM. An addition to the direct payment mechanism is a requirement that exporters manage their received export earnings in accordance with the directives released by